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U.S. Code as of:
01/19/04
Section 412. Application for notes; collateral required
Any Federal Reserve bank may make application to the local
Federal Reserve agent for such amount of the Federal Reserve notes
hereinbefore provided for as it may require. Such application shall
be accompanied with a tender to the local Federal Reserve agent of
collateral in amount equal to the sum of the Federal Reserve notes
thus applied for and issued pursuant to such application. The
collateral security thus offered shall be notes, drafts, bills of
exchange, or acceptances acquired under section 92, 342 to 348, 349
to 352, 361, 372, or 373 of this title, or bills of exchange
endorsed by a member bank of any Federal Reserve district and
purchased under the provisions of sections 348a and 353 to 359 of
this title, or bankers' acceptances purchased under the provisions
of said sections 348a and 353 to 359 of this title, or gold
certificates, or Special Drawing Right certificates, or any
obligations which are direct obligations of, or are fully
guaranteed as to principal and interest by, the United States or
any agency thereof, or assets that Federal Reserve banks may
purchase or hold under sections 348a and 353 to 359 of this title
or any other asset of a Federal Reserve bank. In no event shall
such collateral security be less than the amount of Federal Reserve
notes applied for. The Federal Reserve agent shall each day notify
the Board of Governors of the Federal Reserve System of all issues
and withdrawals of Federal Reserve notes to and by the Federal
Reserve bank to which he is accredited. The said Board of Governors
of the Federal Reserve System may at any time call upon a Federal
Reserve bank for additional security to protect the Federal Reserve
notes issued to it. Collateral shall not be required for Federal
Reserve notes which are held in the vaults of, or are otherwise
held by or on behalf of, Federal Reserve banks.
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